Question

A new study on the health benefits of vitamin C has caused more people to prefer orange juice. At the same time, a freeze in Florida has devastated the orange crop. Given these two effects, what can we say about the equilibrium price and quantity of orange juice?

Answer 1

Answer:

an increase in the price of oranges.

Explanation:

The price of oranges increased because there was an event that influenced the balance of demand and supply. The Florida freeze that devastated the orange crop was an event that affected supply, so as there was greater demand for an orange good, and lower supply for orange, there was an imbalance in the supply and demand curve that caused an increase in supply. price because demand is greater than supply.